Global Steel Demand Growth to Stay Weak at 0.3% in 2026; India Emerges as Bright Spot

Global steel demand is expected to remain subdued in the near term, with the World Steel Association projecting marginal growth of just 0.3 per cent in 2026, according to a report by Centrum.

The slowdown is largely attributed to weak demand in China, where consumption is expected to decline by 1.5 per cent year-on-year in 2026 and remain flat in 2027. In contrast, India is expected to outperform, with steel demand projected to grow by 7.4 per cent in 2026 and 9.2 per cent in 2027.

Global crude steel production stood at 141.8 million tonnes in February 2026, down 2 per cent year-on-year. China’s output declined to 76.1 million tonnes, while India produced 13.6 million tonnes, registering a 7 per cent annual increase.

Despite weak demand trends, steel prices have risen across major markets. The increase has been driven by higher raw material costs, steady order inflows, lower imports and precautionary buying amid global uncertainties.

Prices of hot rolled coil (HRC) and rebar have seen notable gains, while stainless steel and aluminium have also remained firm, reflecting continued volatility in global metal markets.